Grasim Industries Ltd. · NSE:GRASIM

Grasim Industries — Q2 FY2011-12 Earnings Presentation

40 slides from Grasim Industries's earnings presentation, October 2011

  1. Slide 1: Performance Review Quarter 2: 2011-12

    Performance Review Quarter 2 : 2011-12 Grasim Industries Limited A Cement and VSF Major

  2. Slide 2: Cautionary Statement

    Cautionary Statement Statements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or impl

  3. Slide 3: Contents

    Contents  Highlights  Business Review  Financial Performance  Capex Plan  Summary 3

  4. Slide 4: Highlights – Quarter 2

    Highlights – Quarter 2 OPERATIONAL  Both VSF and Cement businesses recorded better performance on YoY basis  In VSF Business  The markets are stabilising after volatility witnessed in Q1  Business witnessed higher volumes led by improved consumption and restoring of dried pipeline inventory  Na

  5. Slide 5: Highlights – Quarter 2 (Cement, Strategic)

    Highlights – Quarter 2 OPERATIONAL  In Cement business  Quarterly profits improved YoY despite challenging environment  Demand growth rate witnessed moderate improvement after setback in Q1, but still below normal growth  Slowdown in investments – Infrastructure and Real Estate  Monsoon, Politi

  6. Slide 6: Business Review

    Business Review  VSF  Chemical  Cement Subsidiary 6

  7. Slide 7: Viscose Staple Fibre : Highlights

    Viscose Staple Fibre : Highlights Global Industry Scenario Quarter – 2 % Chg.  Cotton prices stabilise in Q2 after 2011-12 2010-11 witnessing sharp correction in Q1 from Capacity (TPA) 333,975 333,975 --- peak levels Production (MT) 83,516 69,802 20  VSF prices staged marginal recovery Sales Volum

  8. Slide 8: Viscose Staple Fibre : Highlights (Contd….)

    Viscose Staple Fibre : Highlights (Contd….) Quarter – 2  Operating margin impacted due to 21% % Chg. 2011-12 2010-11 increase in input costs PBIDT (` Crs.) 307.9 272.8 13  Pulp, caustic soda, sulphur and coal PBIDT Margin (%) 28.2% 31.8% --  Standalone PBIDT up by 13% PBIT (` Crs.) 281.9 246.1 15

  9. Slide 9: Viscose Staple Fibre : Outlook

    Viscose Staple Fibre : Outlook  In the short to mid term, demand is expected to be volatile due to macro economic conditions and Euro Zone uncertainties  Profitability in the short term will be governed by the prices of competing fibres, input and energy costs  Cotton production in the current se

  10. Slide 10: Chemical : Highlights

    Chemical : Highlights Quarter – 2 Industry Scenario % Chg. 2011-12 2010-11  Uptrend in caustic prices continued Caustic Capacity (TPA) 258,000 258,000 -  Higher international prices resulted into Production (MT) 65,907 54,244 21 lower imports Sales Volumes (MT) 67,321 51,590 30 Business Performanc

  11. Slide 11: Cement : Industry Scenario

    Cement : Industry Scenario 350 Industry Capacity Mn. Tons 314  Excess capacity continues in the sector 304 300 276  Cement capacity at ~ 314 Mn. MT in Sep. 11 250 216  Capacity addition of 6 Mn. MT during the 198 200 168 quarter 150  Industry added ~ 40% capacity in last two years 100  Current

  12. Slide 12: Cement : Highlights

    Cement : Highlights Quarter -2 % Chg.  Overall volume growth of 9% led by 2011-12 2010-11  Additional volume of Star Grey Cement Capacity Mn. TPA 51.75 51.75 - Cement (0.65 MT) Production Mn. MT 9.51 8.61 11  Domestic volumes increase by 1% Cement Sales Volumes $ Mn. MT 9.76 8.96 9  White cement

  13. Slide 13: Cement : Financials

    Cement : Financials Quarter -2  Net Revenue increased by 28% % Chg. 2011-12 2010-11  Acquisition of Star Cement Realisation `/MT  Improved Volume & Realisation in Grey - Domestic Cement 3,638 3,100 17 Cement - Clinker 2,255 1,633 38  Better RMC and White Cement - White Cement 9,131 8,290 10 Net

  14. Slide 14: Cement : Outlook

    Cement : Outlook  Demand to grow in line with GDP growth  H2FY12: Likely growth of 7% - 8%  Medium to Long Term : Likely growth of 8%-9%  Surplus scenario should subside gradually in next 2-3 years with expected growth in demand  Realisation should follow the trend  Rising energy cost continue

  15. Slide 15: Financial Performance

    ADITYA BIRLA GRASIM Financial Performance 15

  16. Slide 16: Consolidated Revenue

    Consolidated Revenue 114 28% 6 227 924 5774 ` Crore 4503 Quarter 2 Cement VSF Pulp JVs Chemical,Textile Quarter 2 2010-11 & Inter Co. 2011-12 Eliminations 4,503 924 227 6 114 5,774 All businesses contribute to revenue growth 16

  17. Slide 17: Revenue Chart

    Revenue Chart ` Crore Half Year Quarter -2 Net Revenue 2011-12 2010-11 2011-12 2010-11 16% 1,984 1,712 Viscose Staple Fibre 1,082 856 26% 45% 345 239 Chemical 191 120 60% 53 36 Others 28 18 (89) (60) Inter Segment Eliminations (Intra Company) (53) (31) 19% 2,292 1,927 Standalone Net Revenue 1,249 96

  18. Slide 18: Financial Performance – Quarter 2

    Financial Performance – Quarter 2 Quarter - 2 : Standalone Quarter - 2 : Consolidated ( ` Crores) 2011-12 2010-11 % Change 2011-12 2010-11 % Change Revenue 1,249 963 30 5,774 4,503 28 Operating Costs 913 669 36 4,746 3,718 28 PBIDT 506 426 19 1,135 884 28 Interest 11 10 4 89 97 (8) Depreciation 36 4

  19. Slide 19: Financial Performance – First Half

    Financial Performance – First Half Half Year : Standalone Half Year : Consolidated ( ` Crores) 2011-12 2010-11 % Change 2011-12 2010-11 % Change Revenue 2,292 1,927 19 11,711 9,622 22 Operating Costs 1,583 1,313 21 9,043 7,469 21 PBIDT 960 787 22 2,883 2,347 23 Interest 21 21 4 184 189 (3) Depreciat

  20. Slide 20: Consolidated PBIDT

    Consolidated PBIDT 28% 37 34 35 213 1135 ` Crore 884 Quarter-2 Cement VSF Chemical & Pulp JVs Quarter -2 2010-11 Others 2011-12 884 213 35 37 (34) 1,135 Improved performance from Cement & VSF business 20

  21. Slide 21: PBIDT – Chart

    PBIDT – Chart ` Crore Half Year PBIDT Quarter -2 2011-12 2010-11 2011-12 2010-11 14% 658 577 Viscose Staple Fibre 308 273 13% 28% 81 63 Chemical 47 32 44% 221 146 Others 152 121 22% 960 787 Standalone PBIDT 506 426 19% Subsidiaries 24% 1,950 1,567 UltraTech Cement Ltd. 691 478 45% 15 10 Grasim Bhiwa

  22. Slide 22: Net Profit

    Net Profit ` Crores Half Year Quarter -2 2011-12 2010-11 2011-12 2010-11 Total Grasim's Total Grasim's Total Total Grasim's Net share Net share Net Grasim's Net share 31% Profit Profit Profit share Profit 659 503 Standalone Reported PAT 345 280 23% 38% 934 564 677 409 UltraTech Cement (60.34%) 265 1

  23. Slide 23: Grasim Financials

    Grasim Financials Standalone Consolidated Full Year Half Year Full Year Half Year ( ` Crore) 2010-11 2011-12 2010-11 2011-12 Net Worth 8,134 8,795 14,573 15,781 Debt 814 717 6,783 6,763 Capital Employed 9,177 9,752 27,669 29,196 Debt:Equity (x) 0.10 0.08 0.36 0.33 Interest Cover 30.3 35.8 10.8 12.3

  24. Slide 24: Capex

    ADITYA BIRLA GRASIM Capex 24

  25. Slide 25: Capex plan

    Capex plan ` Crore Net Capex Cash Outflow Capex to be spent spent as FY12 FY13 during on 01.04.11 Onwards H1 FY12 VSF Business 2,110 – Expansion Projects: Vilayat (120K TPA), Harihar (36K TPA) - Other Capex 340 Chemical Business – Vilayat (182K TPA) 756 Balance Capex (Including normal capex for chem

  26. Slide 26: Summary

    ADITYA BIRLA GRASIM Summary 26

  27. Slide 27: Summary

    Summary  Both the businesses performed well  Healthy recovery in VSF business  Cement business performance better on YoY basis  Grasim continues to derive strength from leadership position and cost competitiveness in both its core businesses  Capacity expansions under implementation in both bus

  28. Slide 28: Plant Locations– Grasim & its subsidiaries

    Plant Locations– Grasim & its subsidiaries Bathinda(G) Panipat Bhiwani Dadri T Kotputli Aligarh Jodhpur T Malanpur Shambhupura Jawad Bharuch Durgapur(G) UltraTech Cement Plants F Jafrabad Magdalla (G) UltraTech Grinding Units (G) F C Pipavav Nagda Hirmi Raipur Awarpur B UltraTech Bulk Cement Termina

  29. Slide 29: Thank You

    ADITYA BIRLA GRASIM Thank You

  30. Slide 30: Annexure

    Grasim Industries Limited Annexure

  31. Slide 31: Annexure

    Annexure  Consolidated Financial Performance  Standalone Financial Performance  Consolidated and Standalone Financial  Consolidated and Standalone Profitability  Businesswise Performance  VSF Summary  Chemical Summary  Cement Summary 31

  32. Slide 32: Consolidated Financial Performance

    Consolidated Financial Performance (` Crore) Quarter - 2 Half Year Full Year % Chg. % Chg. 2011-12 2010-11 2011-12 2010-11 2010-11 Net Turnover & Op. Income 5,774.1 4,503.4 28 11,710.7 9,621.9 22 21,585.2 Other Income 106.8 98.0 9 215.3 194.3 11 397.4 PBIDT 1,134.6 883.6 28 2,883.0 2,347.2 23 5,396.

  33. Slide 33: Standalone Financial Performance

    Standalone Financial Performance (` Crore) Quarter - 2 Half Year Full Year % Chg. % Chg. 2011-12 2010-11 2011-12 2010-11 2010-11 Net Turnover & Op. Income 1,248.5 962.5 30 2,292.5 1,927.0 19 4,645.9 Other Income 170.7 132.4 29 251.1 172.2 46 297.8 PBIDT 506.2 426.0 19 960.1 786.6 22 1,817.1 Interest

  34. Slide 34: Financial Snapshot

    Financial Snapshot March March March Septembe March March March September ( ` Crore) r * 2009 2010 * 2011 * 2011 2009 2010 2011 2011 Gross Block (Incl. CWIP) 12,280 3,145 3,085 3,481 21,044 21,717 24,166 25,920 Net Block (Incl. CWIP) 8,308 1,829 1,643 1,978 14,219 14,553 15,791 16,982 Goodwill 2,001

  35. Slide 35: Profitability Snapshot

    Profitability Snapshot Half Year Half Year ( ` Crore) 2008-09 2009-10 * 2010-11* 2008-09 2009-10 2010-11 2011-12* 2011-12 Gross Turnover 12,097 8,842 4,891 2,407 20,325 21,711 23,596 12,758 Net Turnover & Op. Income 10,965 8,313 4,646 2,292 18,496 20,195 21,585 11,711 PBIDT 2,844 2,972 1,817 960 4,7

  36. Slide 36: Consolidated Businesswise Performance - Quarter 2

    Consolidated Businesswise Performance - Quarter 2 (` Crore) PBIDT Margin ROAvCE (%) Business Revenue PBIDT PBIT Capital Employed (%) (PBIT basis) 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 Cement * 4,209 3,285 691 478 16.3 14.4 454 259 20,976 18,9

  37. Slide 37: Consolidated Businesswise Performance – Half Year

    Consolidated Businesswise Performance – Half Year (` Crore) PBIDT Margin ROAvCE (%) Business Revenue PBIDT PBIT Capital Employed (%) (PBIT basis) 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 Cement * 8,826 7,258 1,950 1,567 21.9 21.3 1,476 1,135 20,

  38. Slide 38: Viscose Staple Fibre : Summary

    Viscose Staple Fibre : Summary Quarter -2 Half Year Full Year % Chg. % Chg. 2011-12 2010-11 2011-12 2010-11 2010-11 Capacity TPA 333,975 333,975 - 333,975 333,975 - 333,975 Production MT 83,516 69,802 20 153,414 139,130 10 305,087 Sales Volumes MT 78,959 67,488 17 133,798 134,790 (1) 305,072 Net Rev

  39. Slide 39: Chemical : Summary

    Chemical : Summary Quarter -2 Half Year Full Year % Chg. % Chg. 2011-12 2010-11 2011-12 2010-11 2010-11 Capacity TPA 258,000 258,000 - 258,000 258,000 - 258,000 Production MT 65,907 54,244 21 123,287 108,937 13 242,037 Sales Volumes MT 67,321 51,590 30 121,745 105,975 15 241,365 Net Revenue ` Crs. 1

  40. Slide 40: Cement : Summary

    Cement : Summary Quarter -2 Half Year Full Year % Chg. % Chg. 2011-12 2010-11 2011-12 2010-11 2010-11 Grey Cement Capacity Mn. TPA 51.75 51.75 - 51.75 51.75 - 51.75 Production Mn. MT 9.51 8.61 11 19.83 18.53 7 39.67 Cement Sales Volumes $ Mn. MT 9.76 8.96 9 20.10 18.73 7 39.89 Clinker Sales Volumes

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